Retailer Zumiez sees third-quarter profit below estimates
today Aug 31, 2012
Action sports apparel and equipment retailer Zumiez Inc forecast current quarter earnings below estimates after the company reported lower second-quarter profit on higher costs, sending its shares down 14 percent in after-market trade.
The company's August same-store sales rose 3.7 percent but was below the 4.7 percent growth expected by analysts polled by Thomson Reuters.
Zumiez, which sells licensed brands such as Billabong Inter, Nike Inc and Skullcandy Inc, expects current quarter profit of 42 cents to 45 cents per share on revenue of $181 million to $185 million.
Analysts on average were expecting earnings of 56 cents per share on revenue of $183.8 million, according to Thomson Reuters I/B/E/S.
The company's second-quarter net income fell to $2.1 million, or 7 cents per share, from $2.6 million, or 8 cents per share, a year earlier.
Excluding acquisition-related charges and other items, the company earned 17 cents per share while analysts were looking for a profit of 13 cents per share.
The company bought Austria-based sports equipment, footwear, apparel and accessory retailer Blue Tomato in June to reach out to shoppers in Europe.
Zumiez said sales rose 20.4 percent to $135.1 million, marginally below analysts' expectations of $135.5 million.
Costs for the snowboarding and surfing merchandise retailer rose 27 percent to $42.6 million in the quarter.
Shares of the Everett, Washington-based company, which have risen 70 percent over the past year fell to $27.70 in extended trade. They closed at $32.22 on the Nasdaq on Thursday.
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